TM - Japanese automakers could benefit from new agreement on battery minerals for EVs

2023-03-28 10:13:41 ET

Japanese automakers Toyota Motor Corporation ( NYSE: TM ), Nissan Motor ( OTCPK:NSANY ), Honda Motor ( HMC ), Subaru Corporation ( OTCPK:FUJHY ), Mitsubishi Motors ( OTCPK:MMTOF ) and Suzuki Motor ( OTCPK:SZKMY ) could benefit in the future from the deal worked out by the U.S. and Japan in connection with metals processed for electric vehicles qualifying for tax incentives under the Inflation Reduction Act. The two nations have agreed to not impose export duties on lithium, cobalt, manganese, nickel and graphite trading. The agreement was endorsed by Japan's Cabinet and has support in Washington, D.C.

Crucially, the agreement means that Japanese EVs could quality for tax credits of up to $7,500 per vehicle, even though Japan and the U.S. do not have a free trade agreement in place. The agreement could remove some uncertainty over how aggressive Japanese automakers will be in selling all-electric vehicles in the U.S.

Shares of Toyota ( TM ) opened on Tuesday with a 0.88% gain and Honda ( HMC ) was up 0.55% .

See Seeking Alpha Quant Ratings across the electric vehicle sector.

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